NATURE AND PURPOSE - Treasury



50.11 Accounting for Seized Assets, Bribes, and Restitutions

During an investigation, the Office of Investigation (OI) may seize personal property under the Money Laundering and Control Act of 1986, 18 U.S.C. § 1956 and § 1957, where the underlying conduct is subject to investigation under the IG Act. Chapter 400 Section 190 provides detailed information on the processing, handling, storage, and disposal of evidence. This section provides information on the proper accounting for seized assets, bribes, and restitutions.

1. References

• Seized Property and Forfeited Assets System Requirements issued by the Financial Systems Integration Office (FSIO).

• General Accountability Office (GAO) report 01-99G – Seized Property and Forfeited Asset Systems Requirements - Checklist for Reviewing Systems Under the Federal Financial Management Improvement Act.

• SFFAS # 3 – Accounting for Inventory and Related Property.

• Treasury Financial Manual (TFM) section on Federal Account Symbols and Titles (FAST).

50.11.2 Definitions

AIGI – Assistant Inspector General for Investigations.

Bailment – A legal relationship established when TIGTA takes custody of personal property owned by a third party.

Bribe – Anything of value received as an incentive for the Federal employee related to performance of their official duties.

DIGI – Deputy Inspector General for Investigations.

Divisional Seized Asset Coordinator – Individual within the Office of Investigations (OI) assigned administrative duties related to the seized asset module within the PARIS Property Management (PPM) system.

EIN – Employer Identification Number.

Evidence – Information and items gathered by OI during an investigation.

Fair Market Value – The amount that a seller can receive for the item in the normal marketplace from an unrelated third party.

Forfeited – Ownership of the seized asset is transferred from the original owner to another entity.

Funds – Cash, checks, or money orders.

Monetary Item – Cash or any negotiable item such as an uncashed money order or check.

National Seized Asset Coordinator – Individual within the Office of Mission Support (OMS) assigned administrative duties related to the seized asset module within PPM.

PPM – PARIS Property Management system.

Restitution – Court order requiring defendant to remit specified amount of money.

Return – Ownership of the seized asset remains with the original owner and the seized asset is returned to the original owner or the owner’s designee.

Tax Remittance – Funds submitted to an IRS specified location by an individual to pay their Federal taxes.

SA – Special Agent.

SAC – Special Agent In-Charge.

Seized Asset – An item of value taken during an investigation and remaining in TIGTA’s possession until the final disposition is determined.

50.11.3 Accounting for Seized Assets and Bribes

Seizure of assets establishes a bailment relationship between TIGTA and the owner of the property, requiring TIGTA to properly safeguard and account for these assets. OI Form 141 is used to gather information needed for proper accounting. OI Form 141 is submitted twice: 1) when assets are seized or bribe money is received, and 2) upon disposal of seized assets and bribe money.

Accounting for seized assets and bribes requires coordination between various individuals: Special Agent In-Charge (SAC), Special Agents (SA), Divisional Seized Asset Coordinator, National Seized Asset Coordinator, Assistant Director, Finance, Staff Accountant, and IRS and BPD-ARC personnel.

Each SAC is responsible for the proper handling, prompt reporting and timely disposition of all seized funds and property handled by the SAs under his/her jurisdiction. The SAC should conduct annual reviews of the seized funds and property.

50.11.4 Seizure of money, including tax remittances, monetary items, property and bribes.

The SA will:

• Complete OI Form 141,

o Prepare a separate OI Form 141 for each case; seizures for multiple cases may not be reported on a single OI Form 141.

o Prepare a separate OI Form 141 for seizures on different dates for the same case.

o Each item shall be listed separately in the appropriate section: Recovered moneys held as evidence, moneys held for safekeeping, bribe moneys, seized property.

o Report all seized monetary items at their face value.

o Report seized property at the fair market value as of the seizure date, except illegal firearms, drugs, alcohol which are reported with a $0 fair market value.

o Information should only be entered into block 8 (a through d) at time of disposal.

o Additional instructions are attached to OI Form 141.

• Within five business days, email the completed OI form 141 to the appropriate Divisional Seized Asset PPM Coordinator

• Correct errors and omissions when requested by the Divisional Seized Asset Coordinator.

• Retain a copy of the completed OI form 141 in the case file.

• Do not use OI Form 141 to report release of seized assets or bribe money to court for use as evidence. Fully document the transfer of custody of evidence in the evidence log and on the evidence envelope. See Chapter 400 Section 190 for additional detailed instructions.

The Divisional Seized Asset Coordinator will:

• Review OI Form 141 to ensure it has been correctly completed and all necessary data supplied. If there are errors or omissions, work with SA to obtain corrected OI Form 141.

• Retain a copy of OI Form 141 for their records

• Email, within two business days, the completed OI Form 141 to the National Seized Asset Coordinator.

• Provide additional information or explanation when requested by the National Seized Asset Coordinator.

The National Seized Asset Coordinator will:

• Enter the information for the OI Form 141 into the PPM Seized Asset database within two business days of receiving the form.

o Required data: Type, inventory status, acquisition, acquisition date, product type, division, availability, cost, case number, case name, employee ID.

o If applicable: Serial number, brand, model number, comments.

• Record the sequentially assigned PPM record number for each seized asset on the OI Form 141.

• Maintain a copy of the OI Form 141.

• Contact the Divisional Seized Asset Coordinator to resolve any questions or issues regarding the OI Form 141.

50.11.5 Disposal of seized assets, bribes, tax remittances, and property.

The procedures vary depending upon the item: seized funds, seized property, bribe, or tax remittance. Regardless of the item, an OI Form 141 is required for each disposal.

50.11.5.1 Disposal of seized money and monetary items NOT misappropriated tax remittances or Bribe Money. See 50.11.5.2 for disposal of Bribe Money. See 50.11.5.3 for disposal procedures for misappropriated tax remittances.

The SA will:

• Complete OI Form 141, email it to the Divisional Seized Asset Coordinator, and retain a copy for the case file. All blocks of the 141 must be completed.

o Block 8(a) should be the date the SA returned the funds to the original owner or forwarded the funds to the Divisional Seized Asset Coordinator.

o Block 8(b) closing status must be either returned or forfeited.

o Amounts in block 8(c) must equal amount reported in block 7(c) at time of seizure. Seized money and monetary items do not appreciate nor depreciate in value.

o Block 8(d) must indicate who received the money.

• Obtain a signed receipt witnessed by at least two SAs for cash or monetary items returned to the original owner and retain a copy of the signed receipt in the case file.

• Convert forfeited cash to a money order or cashier’s check. Cash shall not be forwarded for processing.

o The money order or cashier’s check must be made payable to TIGTA. For amounts over $10,000, the SA should provide TIGTA’s EIN (03-0510164) to the financial institution generating a Currency Transaction Report (CTR). Using TIGTA’s EIN will prevent the SA’s social security number from appearing on the CTR.

• Complete Form 3210 – Document Transmittal and email it to the Divisional Seized Asset Coordinator.

o The “TO” block shall contain the address for the National Seized Asset Coordinator, even though the Form 3210 is being initially sent to the Divisional PPM Coordinator.

o The release date shall match the disposal date in block 8(a) of the OI Form 141.

o The Case number, amount to be deposited, and overnight tracking number shall be completed.

o The “From” box shall contain the mailing address for the Divisional Seized Asset Coordinator.

o Divisional Seized Asset Coordinator or the SAC will sign as the releasing official.

o The Divisional Seized Asset Coordinator’s phone number must be entered in the “Originator Telephone Number” box.

• Attach the cashier’s check or money order to the completed Form 3210 and for security, place these items in an envelope marked Confidential – Divisional Seized Asset Coordinator. Place this envelope in an overnight envelope addressed to the Divisional Seized Asset Coordinator. Regular mail shall not be used. Form 3210 should indicate the overnight mail tracking number.

• Retain a copy of the cashier’s check or money order and Form 3210 in the case file.

The Divisional Seized Asset Coordinator will:

• Review the OI Form 141, contact the SA to resolve any errors or omissions, and email the OI Form 141 to the National Seized Asset Coordinator.

• Review the Form 3210 and contact the appropriate SA to correct any errors or omissions. Email an acknowledgement to the SA indicating that the funds were received.

• Revise the Form 3210 to reflect the new overnight tracking number. Attach the cashier’s check or money order to the revised Form 3210. Email an electronic copy of the revised Form 3210 to the National Seized Asset Coordinator.

• Place the revised Form 3210 and cashier’s check or money order in an envelope marked “Confidential – National Seized Asset Coordinator.” Place this envelope inside the overnight mail envelope. Regular mail shall not be used. Send overnight envelope to the National Seized Asset Coordinator.

• Retain a copy of the original and revised Form 3210 and the cashier’s check or money order for their files.

• Retain a copy of Form 3210 signed by the National Seized Asset Coordinator in their files.

The National Seized Asset Coordinator will:

• Update the Seized Asset module of PPM based on the Form 141.

o Change the disposed indicator to “yes”, change the status to “forfeiture” or “remission”, and the availability to “final”.

o Enter the final disposition date, final disposition location, status date, and comments, if any.

• Sign and date Form 3210 in the appropriate blocks and email the completed Form 3210 to the Divisional Seized Asset Coordinator as confirmation of funds receipt.

• Prepare a new Form 3210 for transmission to BPD-ARC.

o Use template Form 3210.

o Copy the information (case number, amount to be deposited) from the Form 3210 received from the Divisional Seized Asset PPM Coordinator.

o Enter the new overnight tracking number.

• Attach the cashier’s check or money order to the Form 3210, place in an envelope marked “TIGTA -- Seized Cash for Deposit.” Place this envelope in an overnight envelope addressed to the Accounting Services Branch at BPD-ARC. The current address can be obtained by accessing the BPD-ARC webpage and clicking on Mail/Parcel/Fax.

• Retain a copy of the Form 3210 sent to the Divisional Seized Asset Coordinator, the Form 3210 sent to BPD-ARC, and the signed Form 3210 received from BPD-ARC along with a copy of the cashier’s check or money order.

BPD-ARC will:

• Sign and return the Form 3210 to the National Seized Asset Coordinator acknowledging receipt of the funds.

• Deposit the funds into the miscellaneous funds sub-account of the Government’s General Fund at a Federal Reserve Bank.

• Record this transaction in sufficient detail in the accounting records to allow TIGTA to trace each cashier’s check or money order to the detailed trial balance report for the miscellaneous receipts fund (TGT1099GRXXXX).

50.11.5.2 Disposal of Bribe Money

18 U.S.C. 3666 provides that bribe money received or tendered in evidence in any United States Court shall be deposited in the registry of the court, after final disposition of the case, to be disposed of in accordance with the order of the court.

The SA will:

• After final disposition of the case, ask the U.S. Attorney’s Office to petition the court for an order 1) specifying that the bribe money be forfeited, and 2) commanding the clerk of the court to deposit the funds in the Treasury to the credit of the federal government.

• Obtain a copy of the court order related to the disposition of the bribe money.

• Complete the OI Form 141 as described in 50.11.5.1 above, attach the court order, and email the documents to the Divisional Seized Asset Coordinator. These forms shall be emailed within five business days of obtaining the court order.

The Divisional Seized Asset Coordinator will:

• Review the OI Form 141, contact the SA to resolve any errors or omissions, and email the OI Form 141 to the National Seized Asset Coordinator.

The National Seized Asset Coordinator will:

• Update the Seized Asset module of PPM based on the Form 141.

o Change the disposed indicator to “yes”, change the status to “forfeiture”, and the availability to “final”.

o Enter the final disposition date, final disposition location, status date, and comments, if any.

If the court denies the U.S. Attorney’s petition and returns the bribe money to TIGTA, the procedures for disposal of seized money at 50.11.5.1 will be followed.

50.11.5.3 Disposal of Tax Remittances

The Internal Revenue Service is responsible for the collection of income taxes and maintenance of accounting records indicating the income tax liability of individuals and taxable entities. Tax remittances are posted to the applicable tax receipt account within the overall General Fund receipt account. The applicable tax receipt account is based on the type of tax collected.

Misappropriated tax remittances recovered by OI during an investigation and forfeited to TIGTA by the court will be transferred to the IRS for deposit into the appropriate tax receipt account. These funds will not be forwarded to BPD-ARC for deposit into the miscellaneous receipt account.

The SA will:

• Request the court to forfeit the tax remittance to TIGTA for transfer to the IRS and credit to the affected taxpayers’ tax accounts.

• Convert the cash to a cashier’s check or money order payable to the IRS, if the courts forfeit the tax remittances to TIGTA.

• Prepare results memorandum indicating that recovered misappropriated tax remittance money is being transferred to the IRS to credit the affected taxpayers’ accounts. See Chapter 400 Section 280.8.2.2 for additional information.

• Complete Form 3210:

o Enter the IRS Submission Processing Center address where the results memorandum is being sent in the “TO” block.

o Enter the seized tax remittance money, case number, cashier’s check or money order number and amount in the “Document Identification” block. Also, indicate that the cashier’s check or money order is made payable to the IRS.

o Enter the overnight courier tracking number in the “Remarks” block.

o Enter the SA’s mailing address in the “From” block.

o Have the SAC sign in the “Releasing Official” block.

• For security, place the results memo, Form 3210, and the cashier’s check or money order in an envelope marked “Confidential”. Place the “Confidential” envelope in an overnight mail envelope addressed to the appropriate IRS Submission Processing Center. Overnight mail must be used to send the funds to the IRS. Note: The IRS will sign and return Form 3210 to the SA indicating receipt of the tax remittance and results memorandum.

• Complete OI Form 141 and retain a copy for the case file. All blocks of the 141 must be completed.

o Block 8(a) should be the date the SA forwarded the funds to the IRS.

o Block 8(b) closing status is forfeited.

o Amounts in block 8(c) must equal amount reported in block 7 (c) at time of seizure. Seized assets do not appreciate nor depreciation in value.

o Block 8(d) indicate funds were transferred to the IRS for a tax liability.

• Email the completed OI Form 141 and Form 3210 signed by the IRS to the Divisional Seized Asset Coordinator.

The Divisional Seized Asset Coordinator will:

• Review the OI Form 141 and Form 3210, contact the SA to resolve any errors or omissions, and email the OI Form 141 and Form 3210 to the National Seized Asset Coordinator.

The National Seized Asset Coordinator will:

• Update the Seized Asset module of PPM based on the Form 141.

o Change the disposed indicator to “yes”, the status to “forfeiture”, and the availability to “final”.

o Enter the final disposition date, final disposition location, status date, and comments, if any.

50.11.5.4 Disposal of Seized Property

The SA will:

• Complete OI Form 141, email it to the Divisional Seized Asset Coordinator within five business days of the disposal, and retain a copy from the case file.

o All blocks of the 141 must be completed.

o Block 8(b) closing status must be either returned or forfeited.

o Amounts in block 8(c) must equal amount reported in block 7 (c) at time of seizure. Seized assets do not appreciate nor depreciate in value.

o Block 8(d) must indicate who received the money.

• Obtain a signed receipt for property returned to the original owner, and retain a copy of the signed receipt in the case file.

• If TIGTA retains the property for use, the SA will provide the appropriate Inventory Program Coordinator with all information need to create a record in the applicable PPM module. See Chapter 600 Section 100 for additional information.

The Divisional Seized Asset Coordinator will:

• Review the OI Form 141, contact the SA to resolve any errors or omissions, and email within two business days the OI Form 141 to the National Seized Asset PPM Coordinator.

The National Seized Asset Coordinator will:

• Update within two business days the Seized Asset module of PPM based on the Form 141.

o Change the disposed indicator to “yes”, change the status to “forfeiture” or “remission”, and the availability to “final”.

o Enter the final disposition date, final disposition location, status date, and comments, if any.

50.11.6 Seized Asset Reporting

The National Seized Asset Coordinator will:

• Submit the “Seized Asset BPD Reports – Monetary” and “Seized Asset BPD Reports – Property” to TIGTA’s reporting accountant at BPD-ARC. These reports shall be sent electronically. The reports are due to BPD-ARC no earlier than the third business day before month end and no later than the second business day of the subsequent month.

• On a monthly basis, pull the “Seized Asset Disposition – Closed” report and trace all forfeited monetary items to the accounting records (Detailed Trial Balance for TGT1099GRXXXX).

• Upon request, provide OI with the dates and amounts of seized funds deposited to the miscellaneous receipts fund in the General Fund receipt account.

• On an annual basis, pull the “Seized Asset Disposition – Close” report and trace all forfeited property items retained by TIGTA to the appropriate PPM module.

50.11.6.1 Quarterly Verification

Each quarter, the National Seized Asset Coordinator will run the PPM report entitled “Inventory of Seized Items – Property, Negotiable, or Cash.” The National Seized Asset Coordinator will issue a data call to all Special Agents in Charge (SACs) in OI, requesting that their respective staffs review the information for accuracy. OI staff will:

• Submit an OI Form 141 to the Divisional Seized Asset Coordinator when an open case does not appear on the listing, or a closed case does appear on the listing.

• Provide the information needed to the Divisional Seized Asset Coordinator to correct all errors.

• Inform the Divisional Seized Asset Coordinator of any changes to the status of open cases.

|Status Codes |

|(1) |Prosecution Pending |

|(2) |Disposition in Progress |

|(3) |Case Being Appealed |

|(4) |Case Under Investigation |

|(5) |Trial in Progress |

|(6) |US Attorney’s Office Concerns |

|(7) |Pros. Adjourned, Contemplate Dismissal |

|(8) |Fugitive |

|(9) |Being Held Pursuant to Court Order |

|(10) |Other |

The Divisional Seized Asset Coordinator will:

• Update the status and status date, as appropriate, based on information from OI and enter the validation date.

• Notify the SAC that the review has been completed and list any errors found and corrective action taken.

The SAC will send an email to the National Seized Asset Coordinator indicating the results of the review and any corrective action required of the National Seized Asset Coordinator. The National Seized Asset Coordinator will correct the errors and notify the Divisional Seized Asset Coordinator when the corrections have been made.

50.11.7 Restitution Payments

If the court notifies the SA that a defendant has been ordered to make restitution payments to TIGTA; the SA will prepare a memo to BPD-ARC notifying them that the payment will be sent directly from the court’s probation office. This memo is to include:

• Defendant’s name.

• Statement: “Payment is the result of court-ordered restitution.”

• Court case/docket number assigned by the court (not the TIGTA assigned case number).

• United States District Court from which the check will be sent.

• Statement: Any checks received from the court’s probation office in conjunction with the above named defendant or court case/docket number shall be deposited to the Miscellaneous Receipts Account (TGT1099GRXXXX) of the General Fund Receipt Account on behalf of TIGTA.

• Any other pertinent information that might assist BPD-ARC in identifying these checks.

The memo shall be sent to BPD-ARC at the following address:

Bureau of Public Debt

Accounting Services Branch

Avery Street A3-G

200 Third Street

Parkersburg WV 26106

SAs should confirm the address has not changed by accessing the BPD-ARC webpage, clicking on Mail/Parcel/Fax, and reviewing the address for the processing section.

The SA must notify the court of the following:

• A restitution check in conjunction with this defendant is to be forwarded to the above address for processing.

• The check should contain the court case/docket number.

• The check is for court-ordered restitution.

Copies of all documents sent to BPD-ARC should be maintained in the appropriate SAC office for 6 years and 3 months.

In the event that the courts provide the SA with a one-time full restitution payment, the SA will:

• Complete Form 3210:

o Enter BPD-ARC’s Processing Center address in the “TO” block.

o Enter the defendant’s name, court case/docket number assigned by the court, TIGTA’s assigned case number, and the amount and check number in the “Document Identification” block. Also, indicate that the cashier’s check or money order is a one-time full restitution payment ordered by the court.

o Enter the overnight courier tracking number in the “Remarks” block.

o Enter the SA’s mailing address in the “From” block.

o Have the SAC sign in the “Releasing Official” Block.

• Attach the check to the completed Form 3210 and place both items in an envelope marked “TIGTA Restitution.”

• Place the “TIGTA Restitution” envelope in an overnight mail envelope addressed to BPD-ARC.

• Retain a copy of the check, Form 3210 sent to BPD-ARC, and the signed Form 3210 returned by BPD-ARC in the case file.

• Follow procedures in Chapter 400 Section 280.8.2 if the court orders that restitution payment be made directly to the IRS.

• Contact the Staff Accountant if a listing of restitution payments is needed.

BPD-ARC will promptly deposit the restitution payment at a Federal Reserve Bank to the Miscellaneous Receipts Account (TGT1099GRXXXX) within the General Fund Receipts Account on TIGTA’s behalf. BPD-ARC will record the transaction in sufficient detail in the accounting records so that it is identifiable as a restitution payment in the detailed trial balance.

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